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Financial advisors are betting on bitcoin as a hedge

 Financial advisors are betting on bitcoin as a hedge


Hedge against inflation

The richest man in the world, Elon Musk, wants to get paid in bitcoin


Financial advisors are increasingly using cryptocurrencies such as Bitcoin (BTC) to combat inflation, highlighting the massive shift in institutional sentiment towards digital assets. 

Bitwise / ETF Trends 2021 survey shows that 9.4% of financial advisors dedicate the cryptocurrency in 2020 - a 49% increase over the previous year. 

Among advisors who are not currently allocating a cryptocurrency, 17% stated that they would be "definitely" or "likely" at risk in 2021. 

There are many reasons why advisors would buy cryptocurrencies, and the main reason is the possibility of hedge against inflation. 

As Bitwise pointed out, 25% of consultants believe inflation hedging is one of the most attractive features of the asset class. That's a 9% increase over the previous year.

Hedge against inflation

This year's survey shows that the number of advisers has risen sharply, highlighting the potential higher returns of cryptocurrencies and their role in "inflation hedging" as the main attraction of asset classes. And 994 consultants participated in the poll, compared to 415 last year. 

Independent investment advisors comprised 45% of the respondents, followed by independent brokers and dealers (25%), financial planners (19%), and telecom representatives (11%). 

As more and more investors choose to withdraw from the traditional financial system, Bitcoin appears to be benefiting from the regular depreciation of the US dollar. 

As the incoming Joe Biden administration prepares to craft a multi-billion dollar stimulus plan, the dollar's free fall is expected to continue this year, effectively ending Donald Trump. time to leave.

Although institutions currently represent only a small portion of all Bitcoin holdings, their influence on the market is increasing. 

Jeff Carey, CEO of Goldman Sachs, thinks the corporate acquisitions have put Bitcoin on the path to maturity, but said that more adoption is needed to stabilize the asset class. 

By December 2020, Bitwise's assets under management rose to $ 500 million, a five-fold increase from the two months prior. The company's record capital flow reflects the new requirements of investment professionals including consultants, hedge funds, and companies.

The richest man in the world, Elon Musk, wants to get paid in bitcoin

Elon Musk, the founder of Tesla and SpaceX, who has just become the richest man in the world, said he will never refuse to accept his bitcoin money. In a tweet by author Ben Mezrich, Musk replied: "I will never refuse to pay Bitcoin again.

" Although the response indicated that the billionaire mocked the author of The Social Network, Musk is also known to advocate for the digital currency. 

Last week, the Bitcoin price (per coin) reached an all-time high of 41,530 USD (around 30.4 billion rupees). Earlier in December 2020, it set a record of $ 23,000 per coin, but it is improving every week.

Bloomberg News reports that Musk has become the richest man in the world with a net worth of over $ 188.5 billion. Amazon's Jeff Bezos (by a profit margin of $ 1.5 billion) surpassed Tesla's stock price, and the stock rose sharply at the close of trading on Thursday (Jan.8). 

It is noteworthy that the founder of SpaceX previously described the Bitcoin structure as "great." The 49-year-old billionaire hopes to send people to Mars in early 2024. He has stated that any future economy on the red planet may depend on this cryptocurrency.

Remember that in this case, Cryptocurrency or Bitcoin is basically an Internet-based exchange. Encryption is used to conduct financial transactions between two parties through private and public keys. 

Unlike traditional currencies like the US dollar, the euro, or the yen, Bitcoin has no central bank and no government support. Instead, the unit is controlled and regulated by a community of users, and they believe it is more effective than traditional currencies. 

One of its advantages includes the ability to transfer funds between two parties with the lowest processing cost. Although the total number of Bitcoins could not exceed 21 million, at the moment of last March, there were approximately 2.6 million Bitcoins in circulation. 

The Supreme Court permitted cryptocurrency transactions in India, although it was not recognized. As legal tender. However, the central government is also said to be enacting a law to ban the circulation of cryptocurrencies in the country.